Ferrous scrap prices rose in Japan during the week, market sources said.
However, the bulk heavy melting ferrous scrap import market remained quiet in East Asia on weakness in the iron ore spot market and low-priced Chinese rebar and billet.
Tokyo Steel Manufacturing, Japan's leading mini-mill, raised its scrap buying prices by Yen 500/mt ($4.12/mt) for all grades at all works effective from December 10 arrivals, its first increase in about six months for most of its steelworks.
The mill's H2 buying price at its Utsunomiya works, north Tokyo, was raised to Yen 15,500/mt.
The highest winning bid in the Kanto Tetsugen scrap export auction on December 9 was Yen 15,820/mt ($130/mt) FAS, up Yen 1,160/mt from last month's top bid.
The cargoes will be shipped by February 15 and are believed to be destined for Vietnam.
Japanese traders are currently paying Yen 14,500-15,000/mt FAS at Tokyo Bay area for H2 material for export, up from Yen 14,500/mt FAS a week ago.
Japanese traders are currently targeting around Yen 16,000-16,500/mt FOB for H2 material for export.
Some bookings to Vietnam were still taking place at $165/mt CFR for Japanese H1/H2 50:50 (equivalent to Yen 15,006/mt FOB for H2) during the week, unchanged week on week. As Japanese traders are eying higher prices, trading activity was limited.
South Korea's Hyundai Steel booked Japanese H2 grade scrap at Yen 15,500/mt FOB December 11 week, unchanged from its previous booking a week ago, while Dongkuk Steel Mill secured this same grade scrap at Yen 16,000/mt FOB, Korean and Japanese trading sources said.
There is a price difference because Dongkuk's parcel is due for shipment by end-January whereas Hyundai's parcel will be shipped during February, sources said.
Posco contracted Shindachi grade scrap at Yen 18,000/mt FOB, they said.
The import market for bulk HMS remained quiet during the week, regional market sources said Friday. Scrap demand was thin on falling prices of spot iron ore and Chinese steel and billet exports in the region.
Platts assessed weekly East Asian bulk HMS 80:20 price at $170-$175/mt CFR Friday, unchanged since October 23. The implied midpoint was $172.50/mt.
Most importing and trading sources said they had not heard nor received offers in the region during the week.
A Taiwanese scrap trader reported hearing an offer at $185/mt CFR Vietnam for bulk HMS from US during the December 4 week. "The market is bad, it has slowed down," he said. He attributed this to very poor demand for steel.
Bulk US-origin HMS scrap offers at $185/mt CFR in the region are too high for regional importing mills, amid weak iron ore and low Chinese steel prices, another Taiwanese trader said.
This was the level he heard offered to Korea during the December 11 week.
